Types of Arizona bridge lenders

A bridge loan is a loan with an end date tied to a plan: lease-up, a renovation, a sale, or a permanent refinance that is not available yet. The Arizona bridge page is how this desk arranges that capital from private and institutional sources. This page is the map of lender types a sponsor will meet. The map is not a directory. Naming firms and sorting them would be a ranking, and this site does not publish rankings.

Bank bridge

Some banks will fund a short loan on a commercial property, especially for a depositor, often with recourse and a lower leverage point than a debt fund. The advantage is a relationship and, sometimes, a path to the permanent loan at the same bank. The limit is the bank's credit box and its comfort with a story that is not yet stabilized. A bank that wanted a 1.25x DSCR on day one is not a bridge lender for a vacant building, even if the term sheet says twelve months.

Credit unions that make member business loans can look similar: portfolio hold, recourse, local knowledge. Their aggregate commercial book is capped by regulation, which can matter more than any one file. That cap is not a proceeds quote for your property.

Debt funds

Debt funds are private or institutional vehicles built to hold transitional loans. They are often faster than a bank and more willing to lend against a business plan, a renovation budget, and a future value. They are also more expensive, more document-heavy on covenants, and more specific about extensions. An extension that is 'available' only if a test is met is not the same as a right to extend. Ask what the test is, what the fee is, and who decides.

Some debt funds lend on a senior mortgage. Some prefer to sit beside a bank. The intercreditor agreement is the product. If you cannot describe who gets paid first and who can foreclose, you do not have a structure yet.

Life company and agency transitional loans

A few insurance companies offer a bridge or a bridge-to-permanent for assets that are close to their permanent box. The point is the takeout at the same shop, with a rate mechanism that may be set later. It is still not a permanent loan, and it is still not available for every vacant property. Agency lenders have their own transitional multifamily products. Those are multifamily programs executed by agency lenders. Capital Market Funds is not a Fannie Mae DUS lender and does not become one by arranging an introduction.

Private credit and hard money

Private investors and hard-money lenders can close quickly on a short story, often at higher cost and with more discretion on the asset. The questions are the same ones you would ask a fund, asked more bluntly: who holds the note, is there a servicing agent, what is the real maturity including extensions, and what personal liability survives a default. Speed is not a substitute for reading the term sheet.

Capital Market Funds sources bridge capital from private investors when that is the right execution. The firm does not describe that capital as its own balance sheet. A page of lender types is not a claim that every type is available on every file.

Questions that sort the types

Who is the lender of record, and who services the loan? What is the maximum term if every extension is earned? Is the loan recourse, carve-out only, or partial? What loan-to-cost or as-is value is the advance actually based on? What has to be true for the takeout, and is that takeout a hope or a term sheet? What does prepayment cost if the permanent loan shows up early? The prepayment estimator can illustrate a step-down you type in. It cannot read a fund's extension clause.

The lender-type comparison puts bridge next to permanent sources on leverage, coverage, amortization, recourse, and rough timing, with no interest rates. Use it to see the category. Use a person to see whether your address fits one.